India to introduce scrappage policy for all automobile industry

MUMBAI (Scrap Register): The India government has been working on a scrappage policy for a while. The Delhi government had in August 2018 announced guidelines for vehicle scrapping.

The Indian government may mandate that every auto manufacturer should sets up one or two recycling facilities.

The auto recycling industry in the US and Canada provides enough steel each year to make nearly 13 million new vehicles.

India could learn from the recycling policies in the European Union, Japan, China and Korea. The EU mandates that 95% of the weight of an ELV should be recycled, while Japan has specific requirements for recycling of airbags and automobile residue. Vehicles owners in Japan also have to pay a recycling fee while buying a new car.

Some used vehicles end up in scrap yards. But even at these yards, workers use crude and unscientific methods to dispose vehicles. Such practices pose a danger to health and environment. The sector needs to be regulated if India wants to avoid a disaster.

Once a scrappage policy is in place, vehicle recycling is sure to attract entrepreneurs, given the sheer size of the market and the growth potential.